[FIXED] Sims can't put out a fire because there is fire??

I was having this problem too, but then I noticed that, in order for you to get the option to extinguish the fire, you just need to make sure your cursor is pointing directly in the center of the fire.  You'll even see the cursor change to show that options are available.  However, since the flame is moving, I think this center point that you need to find also moves a bit, making you feel like every time you click on the fire that red banner pops up.  If you move the cursor very slowly around the flame you should see it.